Exchange operator Nasdaq, ABN AMRO Clearing, EuroCCP and European settlement and clearing system Euroclear has created a blockchain-based platform for trading securities and derivative financial instruments. About it reported in a press release.
One of the main functions of the new solution is based on the technology of distributed registry (DLT) mechanism cover losses of investors as a result of triggering a margin call (forced completion of the transaction, when the account balance required to maintain the Deposit of all open positions, is nearing zero).
Also, the press release reported that the Nasdaq will develop a proof-of-concept (Proof-of-concept), and EuroCCP ABN AMRO Clearing will develop the client part of the user interface and will take on the integration of services. Euroclear will, in turn, will ensure the settlement of collateral transfers, and monitoring compliance with regulatory requirements.
Currently, the processing of transactions with collateral on derivatives is centralized, which creates certain risks and challenges. According to the creators of the platform due to the growing number of participants in the derivatives market, this segment of the financial market needs new, more effective solutions. The latter, in particular, should contribute to more optimal management of collateral and the interaction of market participants located in different time zones.
We will remind, recently the head of the Nasdaq adena Friedman said that the cryptocurrency can become “a financial element of the Internet.”
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